Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Ally Financial's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was CHF4,777 Mil. Ally Financial's average total debt for the quarter that ended in Mar. 2026 was CHF16,799 Mil. Therefore, Ally Financial's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 28.44%.
Ally Financial (XSWX:ALLY) Effective Interest Rate on Debt % Explanation
Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.
Ally Financial Effective Interest Rate on Debt % Related Terms
Ally Financial Effective Interest Rate on Debt % Historical Data
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The historical data trend for Ally Financial's Effective Interest Rate on Debt % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ally Financial Effective Interest Rate on Debt % Chart
XSWX:ALLY vs FCFS, KLAR, OMF: Effective Interest Rate on Debt % Comparison
For the Credit Services subindustry, Ally Financial's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ally Financial Effective Interest Rate on Debt % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Ally Financial's Effective Interest Rate on Debt % distribution charts can be found below:
* The bar in red indicates where Ally Financial's Effective Interest Rate on Debt % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data,
the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data.
Effective Interest Rate on Debt % is displayed in the 30-year financial page.
What does a Effective Interest Rate on Debt % of 28.44% mean?
Ally Financial (XSWX:ALLY) has a Effective Interest Rate on Debt % of 28.44% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Ally Financial and its competitors.
Is Ally Financial's Effective Interest Rate on Debt % too high?
Ally Financial's current Effective Interest Rate on Debt % is 28.44%. Overall, Ally Financial has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does Ally Financial's Effective Interest Rate on Debt % compare to FCFS and KLAR?
Ally Financial's Effective Interest Rate on Debt % of 28.44% can be compared against companies in the Credit Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Credit Services company?
A good Effective Interest Rate on Debt % depends on the Credit Services industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Ally Financial and its competitors. Ally Financial's current Effective Interest Rate on Debt % is 28.44%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ally Financial stock overvalued right now?
Ally Financial (XSWX:ALLY) has a current Effective Interest Rate on Debt % of 28.44%. The stock's GF Value™ is CHF31.58, compared to a current price of CHF37.15 — trading 17.6% above its estimated fair value. The current Effective Interest Rate on Debt % is 28.44%. Ally Financial's overall GF Score™ is 68/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Ally Financial (XSWX:ALLY), the current Effective Interest Rate on Debt % is 28.44% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ally Financial (XSWX:ALLY) Overvalued in 2026?
Based on GuruFocus' analysis, Ally Financial stock appears to be overvalued.
The current stock price of CHF37.15 is trading 17.6% above its estimated GF Value™ of CHF31.58.
Key valuation signals for XSWX:ALLY:
Effective Interest Rate on Debt %: 28.44%
GF Value™: CHF31.58 vs. price of CHF37.15 (17.6% above fair value)
No single metric tells the full story. See the XSWX:ALLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formerly the captive financial arm of General Motors, Ally Financial became an independent publicly traded firm in 2014 and is one of the largest consumer auto lenders in the country. While the firm has expanded its product offerings over time, it remains primarily focused on auto lending, with more than 70% of its loan book in consumer auto loans and dealer financing. Ally also offers auto insurance, commercial loans, credit cards, and holds a portfolio of mortgage debt, giving the bank a diversified business model that includes brokerage services.
68GF Score
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